Capital Allowances Act 2001 section 17B

EEA furnished holiday lettings businesses

Section 17B deals with the apportionment of expenditure on property used for an EEA furnished holiday lettings business where the property is also used for other purposes.

• Where property is used for both qualifying and non-qualifying purposes, expenditure must be split between those uses
• The apportionment must be carried out on a just and reasonable basis, considering all relevant circumstances
• For EEA furnished holiday lettings businesses, qualifying expenditure is only the portion attributable to the commercial letting of furnished holiday accommodation
• Any other use of the property is treated as non-qualifying, and the expenditure relating to that use does not attract capital allowances